The veteran media executive Edgar Bronfman Jr has submitted a multibillion-dollar takeover offer for Paramount Global, according to reports.
The entertainment conglomerate behind Paramount Pictures, the storied Hollywood movie studio, and TV networks including CBS, Nickelodeon, MTV and the UK’s Channel 5, last month agreed to a blockbuster merger with the independent film studio Skydance Media.
But that deal contained a 45-day “go-shop period” that allowed Paramount to solicit and evaluate other offers. This period is due to end on Wednesday, but can be extended.
Bronfman submitted a $4.3bn offer for National Amusements, the vehicle that holds media tycoon Shari Redstone’s controlling stake in Paramount, the Wall Street Journal reported, citing sources familiar with the situation.
On Tuesday, Axios reported that Bronfman – who once led Warner Music and Seagram, the spirits conglomerate – had raised a total of $5.5bn to fund his bid.
His approach threatens to undo the planned acquisition by Skydance Media, led by the tech scion David Ellison.
Bronfman’s offer includes $2.4bn in debt and equity for National Amusements, a source told Reuters, and he would also contribute $1.5bn to Paramount’s balance sheet, which could be used to pay down debt.
The bid also adds $400m to cover a breakup fee to end a rival deal – in line with the $400m breakup fee Paramount must pay Skydance if it ultimately walks away from their agreement.
Skydance and its deal partners reached an agreement last month to acquire Paramount in a complicated transaction, in which it would buy out the Redstone family’s controlling stake and subsequently merge into the larger publicly traded company.
A special committee of Paramount’s board is expected to meet on Wednesday to determine whether Bronfman’s offer has a reasonable probability of succeeding. The board committee could extend the go-shop deadline to 5 September, to give it time to evaluate the competing offer.
A spokesperson for Paramount’s board declined to comment. Bronfman did not respond to Reuters’ requests for comment.
Reuters contributed reporting
